In USA, home ownership rate is rapidly increasing with the supporting of implementation of FHA mortgage. It helped the Americans to achieve financial independence that occupying a home. At the start of the program in 1990, the company has insurance the 33 million home mortgages. But now, more than 800,000 home owners opted under FHA. If you are finding ways to get a mortgage loan then you should check the FHA mortgage loan. When it comes to be eligible for a home loan, there may be variety of options available or you. It is good to choose the best loan plan according to your requirements. Among these programs, FHA mortgage is at the top of list. This type of borrowing facility is designed for home owners. These loans can be used to purchase a residential building or refinance an existing home loan. Below are the well-known benefits of a FHA program.
- FHA mortgage loan is offered at a lower down payment. The recent minimum down payment for FHA is 3.5%. The authentic sources of the fund of down payment includes gift from family, friend, or church. With the help of down payment, FHA mortgage loan program supports buyers to purchase a new home.
- FHA loan allow the seller to contribute in a closing cost. It is extremely important in purchasing a new house and reducing the amount of money you required for closing.
- Another advantage of FHA loan is mortgage insurance. Mortgage insurance is approved with the approval of loan.
- One of the great advantages of FHA mortgage is the eligibility to do a streamline refinance. It facilitates the homeowner to transfer the existing loan into a new FHA mortgage loan.
In case, if you have had a bad credit history or no traditional credit, don’t assume that it is difficult to obtain FHA financing. These loans allow the person to take over the new mortgage without paying an extra cost. An FHA loan plans works with no prepayment penalties. Its mean, if you are not able to repay the mortgage early then you will face any charges or fines. All the borrowers are liable to maintain the origination cost below the 1% of the total loan amount. It also helps you to save money at the time of closing. FHA may also help you by providing mortgage insurance at the time of closing the cost. All these positive points made by the FHA mortgage are very attractive opportunities for the serious applicants.
FHA loan is ideal choice for the lower middle class who want to support their pocket to be qualified for a home loan. In order to participate in a FHA loan programs, the applicant should not have to fulfill the certain criteria and make an application form to be approved from a lender. The requirements for the qualification are different on the basis of the needs of lender. There are plenty of FHA approved lenders you just need to find the one who offers the best rates. You can internet for this mission.